On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin SportingGoods Company. The following information is available from the records of the company's periodic inventory system:Inventory, Jamuary 1, 2018Net purchases, January 1 through September 22Net sales, January 1 through Septenber 22Gross profit ratio$144, 000374, 000570, 00030%Required:Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.Beginning inventoryPlus: Net purchasesCost of goods available for saleLess: Cost of goods sold:Net salesLess: Estimated gross profitEstimated cost of goods soldEstimated cost of inventory destroyed

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Description: On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin SportingGoods Company. The following information is available from the records of the company's periodic inventory system:Inventory

Estimated gross profit = Net sales x Gross profit rate = $570,000 x 30% = $171,000

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Accounting

On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system: Inventory, Jamuary 1, 2018 Net purchases, January 1 through September 22 Net sales, January 1 throueh Septeaber 22 Gross profit ratio $14, 000 374, 000 570, 000 30% Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyed

On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system: Inventory, Jamuary 1, 2018 Net purchases, January 1 through September 22 Net sales, January 1 throueh Septeaber 22 Gross profit ratio $14, 000 374, 000 570, 000 30% Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyed

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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